LEGAL FAQs
CODE OF ETHICS Ascertaining Whether a Consumer is Subject to an Exclusive Representation Agreement
R
EALTOR® A was holding an open house for their client’s home, which had been on the market for several months, so REALTOR®A was thrilled to see Buyer C approach the home after two hours with no visitors. REALTOR® A gave her a tour of the space, but Buyer C indicated she was looking for more of a “fixer upper”, as she had almost singlehandedly completed some significant renovation projects in her previous homes, and was looking for the perfect next project. REALTOR® A had another listing that she knew was perfect for Buyer C, and hadn’t been listed in the MLS yet as the client had just signed their agreement earlier that morning. REALTOR® A described the home to Buyer C, and offered to show it to her. Buyer C replied, “Oh, thank you, I am actually working with someone. I should probably ask them about it.” REALTOR® A responded, “that’s fine, but to be honest, I’m not sure if your agent will even get a chance to see it. At the price at which it’s listed, I’m confident it will sell before I can even get it in the MLS.” Somewhat reluctantly, Buyer C agreed to let REALTOR® A show her the second home. REALTOR® A drafted an offer, which was accepted, and the parties completed a quick close. Proud of a job well done for her client, REALTOR® A was shocked when she received notice of an ethics complaint filed against her by REALTOR® B, alleging a violation of Article 16 for interfering with his exclusive relationship with Buyer C. At the hearing, REALTOR® B provided the hearing panel with copies of this
exclusive buyer agency agreement with Buyer C, and Buyer C testified that she did tell REALTOR® A she was working with someone, but felt pressured to tour and submit an offer with REALTOR® A or risk losing the house. REALTOR® A defended her actions, stating, “Listen, if I had known that Buyer C had an exclusive agreement with someone, I would have backed off. But she never said that she was working with someone exclusively; just that she was working with someone. It’s not my responsibility to fill in the gaps on what she told me or hammer her with questions and drive away a potential buyer just to determine what sort of relationship she has. That doesn’t serve my client well.” The Hearing Panel decided that REALTOR® A had violated Article 16, as Standard of Practice 16-9 provides, “REALTORS®, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.” As REALTOR® A had made no affirmative effort to ascertain whether Buyer C’s relationship with another agent was exclusive or not, the Hearing Panel concluded she had made no reasonable efforts to determine the nature of the relationship as required by Article 16.
Read more ethics case interpretations online at: TampaRealtors.org/Ethics
From the Florida REALTORS® Legal Hotline The Legal Hotline attorneys answer questions about real estate license law and offer legal interpretations of standard business forms and contracts. FREE legal advice is available for members! Call (407) 438-1409; Open Monday through Friday, 9 a.m. - 4:45 p.m.
Q: How can I file a complaint with the Florida Real Estate Commission (FREC)? A: All complaints must be in writing. Although you may write a letter, the Department of Business and Professional Regulation provides a Uniform Complaint Form that is available from various sources, including floridarealtors.org and MyFloridaLicense.com.
Q: I’m a landlord, and I don’t want to rent to college students. May a landlord refuse to rent to single college students without violating the Fair Housing Act? A: Yes. College students don’t constitute a protected class under the Fair Housing Act, which prohibits discrimination based on race, color, sex, religion, disability, familial status or national origin. Familial status has been defined as a person with one or more children under the age of 18, a woman who is pregnant or a person who has custody or is gaining custody of a child under the age of 18.
tamparealtors.org
7
